Uzbekistan Set to Implement Framework for Registering Crypto Miners

Uzbekistan’s National Agency for Prospective Projects (NAPP), an organization primarily responsible for crypto oversight, might release new rules. Vyacheslav Pak, the First Deputy Director of NAPP, told local sources that a framework concerning crypto mining and investment through token issuance is in the works.

NAPP tasks itself with licensing crypto-related firms and employs a staff of 45 officials.

Upcoming Crypto Mining Regulation in Uzbekistan

Pak stated that a government directive established the framework for regulating Uzbekistan’s crypto mining and market in 2018.

The official highlighted that the agency is actively working on new guidelines for registering crypto miners and operating mining pools.

The translated statement notes,

“NAPP will oversee licensing activities of service providers in the field of circulation of crypto-assets and the inclusion of mining in the licensing procedures at the legislative level.”

Pak noted that the agency will assist entrepreneurs interested in issuing tokens to raise capital. He also highlighted the agency’s commitment to various legislative initiatives. These initiatives include codifying the existing licensing system and reevaluating mining conditions, focusing on expanding the list of permissible alternative energy sources.

Take a look at Bitcoin Halving Cycle Scheduled for April 2024: Bitcoin Halving Cycles And Investment Strategies: What To Know

It is clear from the interaction that NAPP is an inter-agency government body tasked with fulfilling the mandates of the Central Bank and other law enforcement agencies. Pak underlined that the agency identifies dubious transactions that may involve illicit crypto activities.

It includes collaboration with Uzbekistan’s financial intelligence unit and the Ministry of Internal Affairs.

Registered Entities in the Country

Earlier this month, NAPP approved two banks to be participants in the national digital sandbox for regulations. When asked about the agency’s regulatory sandbox, Pak noted that currently, three participants are registered. These include United Integrator Uzinfocom LLC and two banks—Kapitalbank JSC and Ravnak Bank JSC.

NAPP has so far licensed one cryptocurrency exchange and nine other crypto trading platforms. Notably, the agency has been in talks with global platforms like Binance, Huobi, and Bybit about possibly setting up operations in Uzbekistan.

BeInCrypto reported last year that the country blocked several foreign platforms from operating without a local license.

Meanwhile, a mining bill could be crucial considering the upcoming Bitcoin halving in 2024. Lately, Bitcoin Mining Difficulty has hit a new peak, with hashrate recording a brief surge. This has negatively impacted the profitability of miners.

Bitcoin Mining Hash Rate. Source: Blockchain

The performance of Bitcoin remains muted on the daily and weekly charts. At press time, BTC is trading just under $26,000.

The post Uzbekistan Set to Implement Framework for Registering Crypto Miners appeared first on BeInCrypto.

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